Motor Coach asks to reimburse lenders' expenses for prospective $230 million exit financing

By Jennifer Lanning Drey

Portland, Ore., Dec. 24 - Motor Coach Industries, Inc. requested court approval to reimburse up to $750,000 of out-of-pocket expenses incurred by prospective lenders in connection with its potential exit financing, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said it is in the process of working with prospective lenders to obtain a $230 million exit financing commitment. Some potential lenders have already advised they require reimbursement of associated expenses, according to the motion.

"Securing the exit facility is absolutely essential to permitting the debtors' exit from bankruptcy by financing the plan and providing working capital for the debtors after they emerge from Chapter 11," Motor Coach said in the motion.

A hearing has not yet been scheduled.

Motor Coach Industries is a Schaumburg, Ill.-based designer, manufacturer and marketer of inter-city coaches and related replacement parts for the North American market. Its Chapter 11 case number is 08-12136.

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